Policy on the Administration of Sponsored Programs

Sponsored programs provides significant benefits to the University and furthers its
educational mission by facilitating research, workshops, conferences, and other projects that
enrich the scholarly endeavors of faculty and students and enhance the services provided by
the University to California communities and the nation. This document delineates or refers
to policies, procedures and organizational structures for the administration of grants and contracts
denoted as sponsored programs/projects. All procedures and actions are designed to conform to
federal and state laws and regulations, CSU, University and Foundation policies. In the event that a
given contract or grant contains terms and conditions that are not in conflict with, but are more
restrictive than, those provided in the campus policy, the more restrictive terms and conditions of
the grant or contract shall prevail. The intent of this policy is to ensure that the administration
of sponsored programs maximizes the benefits of these programs; effectively supports faculty,
students, and administrators in securing funding for and carrying out sponsored activities;
and is in compliance with CSU policy including Executive Order 890 or its successor.

“Contract” means a written agreement between the University or the
Foundation and a sponsor to provide an economic benefit to the sponsor,
generally in the form of services, for compensation. The agreement is
binding and creates a quid pro quo relationship between the parties. Contract
activity includes research, public service, and educationally related project
proposals and awards, whether solicited or unsolicited, which are either
submitted to or received from federal, state, municipal, or county agencies;
public or private corporations; and private foundations or individuals.

“Grant” means a financial award to a recipient to carry out an approved
project or activity. A grant generally anticipates no substantial programmatic
involvement of the sponsor with the recipient during performance of the
project or activity, but sponsors usually request an accounting of the use of
funds and of results of the project or activity. The University or Foundation
may commit resources or services as a condition of the grant. Grant activity
includes research, public service, and educationally related project proposals
and awards, whether solicited or unsolicited, which are either submitted to or
received from federal, state, municipal, or county agencies; public or private
corporations; and private foundations or individuals.

“Principal Investigator” means the individual (whether referred to in the
contract or grant as a Principal Investigator, Project Director or other similar
term) designated by the University or Foundation to be responsible for
ensuring compliance with the academic, scientific, technical, financial and
administrative aspects and for day-to-day management of the sponsored
program. For a description of who may serve as a Principal Investigator, please
see Section IV.B.1.

“Recipient” means the University or CSU auxiliary awarded a contract
or grant. The recipient at Cal Poly is usually the Foundation but could be
either the University or the Foundation, even if an alternative administrative
component is designated in the award document, and shall not be an
individual, department or other constituent unit.

“Sponsor” means the party paying for the services or other economic benefit
under a contract or providing the financial award for a project or activity
under a grant.

“Sponsored program(s)” means all work performed under grants or
contracts funded by non-CSU funding sources, including non-CSU funded
contracts and grants that are subsequently subcontracted to another
campus.

“Sponsored Program(s) Administrator” means the entity (University
or Foundation) designated by the Recipient to administer the sponsored
program. At Cal Poly the Foundation is designated as the primary
Sponsored Programs Administrator for the University.

“Sponsored program records” include, but are not limited to, accepted
proposals and applications; contracts or grant agreements; program reports and
data; correspondence; budgets and supporting financial documentation;
supporting human resources documentation; and other records relating to
receipt, review, award, evaluation, status and monitoring of the sponsored
program.

“Sponsored program work product” means any work created in the
performance of a sponsored program. Unless the contract or grant states
otherwise, sponsored program work product does not include journal articles,
lectures, images, books or other works that are subject to copyright
protection and have been created through independent academic effort
even if based on the findings of the sponsored program.

Responsibility for the Administration of Sponsored Programs
The President is ultimately responsible for the educational effectiveness, academic
excellence, and general welfare of the campus over which he presides. The President
requires that the University and the Foundation operate in conformity with applicable
law and the policies of the CSU and the campus when proposing and administering
sponsored programs. Sound management and administration of sponsored programs
requires coordination among organizationally separate units and individuals on the
campus. The President has identified a campus official responsible for implementing
each area of this policy.

Sponsored Programs Administration

The University has delegated the role of Sponsored Programs Administrator to the Foundation
for the majority of sponsored projects. A Master Operating Agreement has been executed
between the University and the Foundation (Contract # M101818 Final), which sets forth the
roles and responsibilities of each party with regard to the administration of sponsored
programs. The Supplemental Operating Agreement (SOA Number M105028) further
delineates the roles and responsibility of the Foundation in the administration of externally
sponsored projects and related activities in accordance with the requirements identified in
Executive Order 890.

Proposal Generation, Submission, Review, and Approval

All grant and contract proposals to external sponsors must be submitted
through the University’s Grants Development Office, which will submit them
to the sponsor on behalf of the University. Proposals shall be submitted under
cover of a Project Approval Form (PAF), by the Principal Investigator, to the
department chair (or comparable organizational unit director) for initial review.
The department chair (or unit director) shall then forward the signed PAF,
indicating approval, to the college dean or comparable organizational unit
administrator, before submission to the Grants Development Office. The
signatures of the department chair and the college dean (or comparable
administrators) on the PAF certify that the project is consistent with the
mission of the department, unit or college, and that any proposed
departmental/unit/college commitments, financial or otherwise, will be
honored. Other required signatures will be identified and obtained by the
Grants Development Office, including approval in writing by officials of the
University/Foundation responsible for the following areas, as applicable:

academic/programmatic

fiscal;

health and safety;

human subjects research;

animal subjects research;

space;

major technical resources and equipment;

risk management

Proposals for sponsored programs shall have written approval of the
President of the University or the President's University designee and
of the chief financial officer of the University or the chief financial
officer's University designee prior to submission to the sponsor.
Other approvals may also be required.

All proposals and applications for grants or contracts shall specify the
recipient of the grant or contract as the Foundation or University.

Qualifications and Responsibilities of the Principal Investigator

Qualifications
Normally, individuals who serve as “Principal Investigators” shall be full-time
faculty, MPP (management personnel plan) or staff employees at Cal Poly.
Faculty participants in the Faculty Early Retirement Program (FERP) may
apply for or serve as Principal Investigators on grants only when the grant can
be accomplished during the period of active employment under FERP.
Exceptions may be made for Principal Investigators who are not
employees of the University or Foundation, but who are officially
affiliated with the University, such as individuals with emeritus status or
visiting professors or researchers. Other exceptions may also be made on
a case-by-case basis. Such individuals shall not receive an appointment to a
faculty classification based on their PI status alone. In addition, they must
have a sponsoring department and college, whose Chair and Dean will provide
the required approvals on the proposal.
In cases in which the Principal Investigator is not an active, full-time faculty or
staff member, a Co-Investigator with responsibility for fiscal matters may be
required.

Responsibilities
The Principal Investigator is the individual responsible for all aspects of the
grant — both programmatic and fiscal. In general, the responsibilities of the
Principal Investigator, beyond those that may be imposed by the sponsor,
include but are not limited to:

Assuming overall responsibility for meeting the requirements, goals and
objectives of the sponsored program as originally proposed, or
subsequently modified;

Working closely with the Sponsored Programs Office or University as the
case may be, to ensure that funds are spent appropriately and in accordance
with the terms of the grant/contract and the allowable cost principles
identified in OMB circulars;

Complying with applicable federal and state laws and University and
Foundation policies and procedures.

Preparing and submitting reports at the times indicated in the grant or
contract;

Maintaining a close working relationship with the Foundation Sponsored
Programs Office or University as the case may be, to manage the
grant/contract funds;

Distribution of responsibilities among Principal Investigators on multiinstitutional
sponsored programs
Some grant and contract activities require the participation of more than one
institution. In such cases, the responsibilities of all participating institutions
and principal investigators shall be defined in written agreements signed by the
institutions' respective authorized agents. Representative examples of
acceptable agreement instruments include subcontracts and memoranda of
understanding (MOU). All such agreements shall stipulate that all parties will
adhere to appropriate institutional policies governing grant and contract
administration and any specific sponsor requirements.

Acceptance of Awards

Awards of contracts or grants shall not be accepted without prior written
approval, by appropriate officials of the University and Foundation
responsible for the following areas, as applicable: (a) Academic/
programmatic; (b) fiscal; (c) health and safety; (d) human and animal
subject research; (e) space; (f) major technical resources and equipment;
and (g) risk management.

In addition, prior to acceptance of an award by the Sponsored Program
Administrator, the information identified below must be provided.
This information should either be included in the specified contract,
grant or master agreement, or provided in the Proposal Approval
Form:

Identification of the Principal Investigator and staffing needs for
the sponsored project;

Identification of the funds and resources available or needed, the
projected budget, and other fiscal and administrative
requirements.

The Sponsored Programs Administrator, in collaboration with the Principal
Investigator, shall be responsible for negotiating any terms and conditions that
differ substantially from those initially proposed. In accordance with CSU
policy, all allowable costs, both direct and indirect, shall be recovered to the
extent possible.

The final award document resulting from all grant and contract negotiations
must have final approval of the Executive Director of the Foundation or his/her
designee if the Foundation is to be the recipient of funds, or the campus chief
financial officer or his/her designee when the University is to be the recipient
of funds. Only the University or the Foundation designees and not the
Principal Investigator, may accept an award.

Upon acceptance of an award, the Principal Investigator assumes
responsibility for security, custody and retention of the Sponsored
Program Work Product and programmatic/technical records after
completion of the Sponsored Program.

Upon acceptance of an award, the Sponsored Programs Administrator shall
notify individuals and organizational units affected by the award.

Performance of Work on Grants and Contracts

Employment

The Sponsored Programs Administrator shall be the employer of the principal
investigator and other employees with regard to work performed on a sponsored
project. In cases where the University is the Sponsored Programs Administrator
and the University transfers by written agreement the administration of the
project to the Foundation, the Foundation becomes the de facto Sponsored
Program Administrator.

The Sponsored Programs Administrator is responsible for the assignment,
evaluation, and termination of employees on sponsored projects and for other
employer obligations associated with performance and payment under the
grant/contract, in accordance with campus policy for the administration of
contracts and grants. This applies regardless of whether the employee is being
paid directly by the Sponsored Programs Administrator or whether the University
is being reimbursed by the Foundation for the reassignment of an employee from
selected University duties to work on the contract or grant.

Principal Investigators, consultants, and project staff shall not be hired on any
project until the terms and conditions of employment, particularly salary, have
been determined, agreed to, and confirmed in writing between individuals and
the Foundation/University administration (whichever is the Sponsored Program
Administrator).

All recruitment and appointment activities shall adhere to applicable Federal,
State, CSU, University and Foundation policies and procedures (as applicable),
including the CSU policy on nepotism.

In the event that the Principal Investigator is incapacitated, resigns, fails or
refuses to perform the normal and reasonable duties of the position, or engages in
unprofessional conduct, the Sponsored Programs Administrator, after
consultation with the Dean of the applicable college/unit (or comparable
responsible administrator), the Vice Provost for Academic Personnel (for faculty
PIs) or the Director of Human Resources (for staff PIs), and the Dean of
Research and Graduate Programs, may remove the individual from the grant or
contract and terminate the agreement, assign another individual as PI, or take
other appropriate action. In the case of sponsored programs that require
scholarly research and/or technical effort, which cannot be overseen by the
Sponsored Programs Administrator, suspected problems in performance will be
referred to the Dean of Research and Graduate Programs, who will confer with
the Principal Investigator and appropriate University administrators to evaluate
the problem and recommend remedial actions if necessary. The Sponsored
Programs Administrator shall obtain prior sponsor approval as required.

Additional employment
Additional employment refers to any CSU employment that is in addition to
the employee’s primary appointment, regardless of funding source. CSU
employment includes all CSU, CSU Foundation, and other CSU auxiliary
employment. The Sponsored Programs Administrator shall monitor additional
employment and shall comply with the limits established by the CSU
Additional Employment Policy.

All employees shall be subject to appropriate sanctions for unprofessional
behavior, failure or refusal to perform duties adequately, or other misconduct
pursuant to the applicable Collective Bargaining Agreement and/or University
policies.

Human Subjects Research
All sponsored projects that involve research with human subjects must conform to
federal guidelines and campus policy for research involving human subjects. These
guidelines and policy exist to ensure protection of the rights and welfare of human
subjects involved in research in which the institution (University or Foundation)
is engaged. The institution is engaged when its employees, students, or other
individuals performing institutionally designated activities or exercising
institutionally delegated authority or responsibility: (i) intervene or interact with
living people for research purposes or (ii) obtain individually identifiable private
information for research purposes. (See federal guidelines)

The campus policy on Human Subjects in Research
conforms with all applicable laws and regulations, including but not limited
to, Title 45, Code of Federal Regulations, Part 46. The campus has a Federal
Wide Assurance for protection of human subjects and an Institutional Review
Board (the Cal Poly Human Subjects Committee), both approved by the
federal Office of Human Research Protections.

Sponsored projects that involve research on human subjects must be
reviewed and approved by the Human Subjects Committee prior to
acceptance of an award. Campus policy provides for annual review on multiyear
awards. The President or designated official will take appropriate action,
including termination of a project, if appropriate, to ensure protection of
human subjects and compliance with requirements of funding and regulatory
agencies for the protection of human subjects in research.

Animal Subjects Research
All sponsored projects that utilize live non-human vertebrate animals
must conform to federal guidelines and campus policy on the use of such
animals. The campus policy on Animal Subjects in Research regulates the
procurement, housing, care, and use of live non-human vertebrate animals
in research and instruction by employees of the University or Foundation
in the regular course of their employment, in educational and research
activities of students in satisfaction of University requirements, and in
research or instruction using any University property or facility. The
policy is consistent with the Guide for the Care and Use of Laboratory
Animals (institute for Laboratory Animal Research, Commission on Life
Sciences, National Research Council), and applicable federal regulations.

Cal Poly has an Institutional Animal Care and Use Committee (IACUC),
appointed by the President and charged with the review and evaluation of
animal facilities and procedures (procurement, housing, care) and
research and teaching protocols. Sponsored projects that involve research
using live non-human vertebrates must be reviewed and approved by the
IACUC prior to acceptance of an award. Campus policy provides for
annual review on multi-year awards. The President or designated official
will take appropriate action, including termination of a project if
appropriate, to ensure protection of the welfare of animal research
subjects and compliance with requirements of funding and regulatory
agencies for the protection of live vertebrate animals in research.

Fiscal Administration

Budget
The Sponsored Program Administrator is responsible for final certification of postaward
project budgets, and budget change review procedures. The Principal
Investigator for a contract or grant shall be responsible for executing the project in
conformance with the approved budget, sponsor regulations, and University and
Foundation policies and procedures. Pre-award disbursements are allowed, on a
case-by-case basis, if the awarding agency policies and procedures permit, in
accordance with the following:

Pre-award disbursement is required for the proper and timely execution of
the award objectives, as determined by the Sponsored Program
Administrator.

Verbal, electronic or written confirmation, from the Sponsor of the pending
award is obtained by the Grants Development Office, and

An “Open Account Memo” is established and executed by the appropriate
individuals. This will ensure that the appropriate department will cover
the costs associated with pre-award spending should an award not be
issued.

Account Management
The Sponsored Program Administrator is responsible for the timely
establishment of accounts in accordance with the terms and conditions of the
grant or contract. The Sponsored Programs Guide identifies the Foundation’s
policies and procedures relating to the administration of sponsored programs.
All expenditures shall be made in accordance with Foundation, University and
sponsoring agency guidelines, policies and procedures. All accounting and
control of cash receipts from contract or grant billings are maintained on a
fund accounting basis and are in accordance with Generally Accepted
Accounting Principles, prevailing OMB Circulars, sponsoring agency terms
and conditions, and University and Foundation policies and procedures as
applicable. All grant and contract expenditures require the written
authorization of the Principal Investigator or designee and the Sponsored
Program Administrator, and must be submitted on appropriate forms.
Reimbursement for personal expenditures by the Principal Investigator will be
approved by the PI’s immediate supervisor. Authorization of a designee by
the Principal Investigator will be done in writing on the Authorization of
Signatures for Purchasing (ASP) Form. The Principal Investigator’s signature
on expenditures certifies program appropriateness and compliance with the
approved budget and the Sponsored Program Administrator signature certifies
availability of funds and compliance with the Sponsoring Agency terms and
conditions.

Reporting Requirements
The Sponsored Programs Administrator shall ensure that all fiscal and
technical reports and billings are prepared and submitted on a timely basis in
accordance with the terms and conditions of the grant or contract. The
Principal Investigator is responsible for the timely submission of accurate
technical and project progress reports. The Sponsored Program Administrator
shall monitor compliance with technical, project, and financial reporting
requirements.

Cost Recovery
All appropriate indirect and direct costs shall be recovered for sponsored programs in
accordance with CSU policy, University and Foundation policies and/or other
funding agency requirements.

Cost Sharing
In some cases the University may waive a portion of direct or indirect costs as a
means of cost sharing. When there is cost sharing or matching in connection with a
sponsored program, the Sponsored Program Administrator, in conjunction with the
Principal Investigator, must document actual costs shared or matching contributions
in a manner consistent with the campus cost allocation plans, sponsor requirements
and OMB Circulars, if applicable. All cost sharing shall be documented at the time
of proposal submission on the PAF and/or the “Grant-Matching Request Form.”

Sponsored Program Work Product and Records

Work Product
Ownership rights to data, materials, records and any other form of
intellectual property developed on sponsored projects will be specified in the
terms of the contract or grant. Any contract or grant that provides for
ownership or license of intellectual property developed on a sponsored
project shall provide the University with a free-of-cost, non-exclusive license
to use said intellectual property for purposes consistent with the educational
mission of the University (see the campus Intellectual Property Policy).

Records Retention
All necessary records and reports pertaining to a grant or contract shall be
maintained by the Sponsored Programs Administrator and the Grants Development
Office while the project is ongoing. Records shall be maintained for a minimum of
three years after the end date of a sponsored project unless sponsor requirements
differ, in which case the longer retention period shall prevail. Some records may
need to be retained for a longer period to protect future intellectual property interests
or when records may have historical, artistic or other value. In these cases, the
materials will be turned over to the appropriate University official for retention or
preservation.

The Principal Investigator is responsible for retaining laboratory notebooks and other
primary data records, whether paper or electronic, as necessary to meet sponsor
requirements or to protect intellectual property interests.